How long-term care costs rose 4% annually from 2018 to today: Singlife

Dementia cases alone are projected to hit 152,000 by 2030.

At the Asian Banking & Finance and Insurance Asia Summit in Singapore on 25 September, Helen Shen, Group Head of Products at Singlife, warned that the city-state is facing a family crisis amidst escalating healthcare costs.

Singapore’s demographic shift is stark. By 2030, one in four citizens will be over 65. “The old-age support ratio will drop to 2.7. Just 10 years ago, that number was six,” Shen said, highlighting the shrinking pool of working adults to support the elderly.

The impact will be visible in healthcare. Dementia cases alone are projected to hit 152,000 by 2030 (around 10% of the senior population).

Meanwhile, Ministry of Health spending is forecast to climb from today’s $15.6b (S$20b) to $23.4b (S$30b). “If you ask me, what does 2030 look like? It looks a lot scarier, a lot more expensive, and a lot more urgent for all of us,” she told the audience.

Singlife’s latest white paper, based on a multi-year survey of caregivers, pegs the average monthly cost of long-term care at $2,303 (S$2,952).

That figure has jumped from $1,813 (S$2,324) in 2018, reflecting 4% annual inflation. Costs include expected items like physiotherapy and nursing homes, but also overlooked ones such as special transport, diapers, and even counseling for caregivers.

With claims lasting on average 10 years—and sometimes up to 15—the total bill can exceed $865,800 (S$1.11m). 

“Denial is not a financial strategy,” Shen said. 

Yet awareness remains low: only one in three Singaporeans have supplementary long-term care insurance, and 57% underestimate the true cost.

The human burden
Beyond the numbers, Shen drew attention to the strain on families. 

Despite openness to professional help, 76% of Singaporeans rely on family caregivers. These caregivers spend an average of 33 hours per week on support—equivalent to a full-time job. 

“Forty-four percent of caregivers for dementia patients struggle with their own emotions and mental well-being,” she said. Insurance, she argued, is not just about payouts but about preserving dignity and reducing this burden.

Shen called for a shift in mindset, guided by Singlife’s “AAAB model”: Awareness, Accountability, Action, and Building a secure super-aged society. 

She reminded the need for early planning and greater take-up of insurance supplements such as CareShield Life.

“Think about $2,303 (S$2,952) for yourself, for your organisation, for society,” she urged. “If we don’t act now, it’s a family crisis. But if we act together, it can be a managed responsibility.”